BRAZIL · DEBT RELIEF
Key Facts
- —What is happening Brazil’s Finance Ministry published rules on Thursday, 22 October, for buying overdue household debt, and gave banks and funds until Friday, 30 October to report which debts they could offer.
- —Why it matters Desenrola 3.0 would let the federal government buy old card, overdraft and personal-loan debts at a discount of at least 90%, a step that could clear old defaults from bank books.
- —The numbers The ministry expects offers of up to BRL 90 billion (about US$17.8 billion), so the state would pay at most BRL 9 billion (about US$1.8 billion); each debt may be worth up to BRL 10,000 (about US$1,980).
- —Who is who Finance Minister Dario Durigan signed the order, which follows Provisional Measure 1,393 of 25 September; banks, securitisation companies and receivables funds are the creditors being asked to respond.
- —What to watch Which lenders respond by 30 October, how much debt they list, and when the ministry publishes the separate public notice that sets the auction itself, planned for November or December.
- —Power Index Brazil ranks 1st of 14 in The Rio Times Latin America Power Index, with 75.0 points (October 2026 edition).
- —What it means for you For US investors in Brazilian banks listed in New York, a state buyer could lift loan quality, but no lender has confirmed a sale; US residents with Brazilian debts need do nothing yet.
Prediction markets · who wins the runoff
Implied chance of winning Brazil’s presidency on 25 October, from traders’ prices.
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Flávio Bolsonaro 77.1% · Lula 22.5% (US$192 million traded)
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Flávio Bolsonaro 76% · Lula 23%
As of 23 October, 2:40 am ET (07:40 Lisbon), updated every 20 minutes. Prices are bets, not polls, and can move fast.
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Brazil has opened the first step of its Desenrola 3.0 debt purchase, but only for lenders. The auction, and any relief for debtors, come later.
Brazil’s Finance Ministry published the rules for buying overdue household debt on Thursday, 22 October. Lenders, among them New York-listed Itaú and Bradesco, have until Friday, 30 October to say which debts they could offer.
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Runoff poll average: Flávio Bolsonaro 50.9%, Lula 49.1%
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Poder360 reported that the ministry expects up to BRL 90 billion (about US$17.8 billion) on offer. At the minimum discount the state would pay at most BRL 9 billion (about US$1.8 billion).
What Portaria 3,127 Sets Out
Minister Dario Durigan signed Portaria MF 3,127, issued in an extra edition of the Diário Oficial da União on Thursday, 22 October. It follows Provisional Measure 1,393 of Friday, 25 September, which lets the Union buy portfolios of unpaid personal debt.
The order also publishes Call for Expressions of Interest No. 1 of 2026. Taking part is required for the first auction notice, but it creates no right to sell and no duty to buy.
Banks, securitisation companies, receivables funds and other holders of eligible credits may respond. The portaria says the information is informative and not binding, and it will help the ministry design the auction.
The auction terms will come in a separate public notice that the portaria does not yet contain. A lender that does not respond by the deadline cannot take part in the first auction notice.
Which Debts Qualify for Purchase
The call covers five kinds of debt owed by individuals, including micro-entrepreneurs known as MEIs. These are revolving card balances, instalment card debt, personal loans without payroll deduction, unsecured MEI credit and overdrafts.
Each debt must have been overdue for more than 720 days and fewer than 1,645 days, counted from 25 September 2026. That is roughly two years to four and a half years.
The original value must be up to BRL 10,000 (about US$1,980) per debt. A person may have several debts, each within the limit, and each must allow a discount of at least 90%.
Conversions use the exchange rate of 23 October 2026 (US$1 = BRL 5.04). A 90% discount means the state pays 10 centavos for each real of overdue debt.
What Lenders Must Report
Each lender must give the number of debtors by tax number, the number of contracts and the total value of eligible credits. The data must be split by default-register status, income band and length of delay.
The income bands are no income or up to two minimum wages, two to five, above five, income unavailable, and MEIs. The delay bands are 721 to 1,080 days and 1,081 to 1,645 days.
Lenders must also report debts overdue for 90 to 720 days, or more than 1,645 days. This applies only to debtors who already hold a qualifying debt with them.
Consumers Do Not Need to Act Yet
Durigan said on Wednesday, 21 October that the government was not calling on families or MEIs at this stage. He said it was calling on creditors “so they organise themselves”, as carried by Tribuna do Sertão.
Earlier phases of Desenrola reached about 25 million people, the lower house of Congress says. This third phase works differently, because the state buys the debt at auction and passes the discount to the debtor.
What It Means for US Readers
Holders of Itaú, Bradesco, Nubank and Santander Brasil (tickers ITUB, BBD, NU and BSBR) should watch which lenders respond. Selling debts overdue for years at a deep discount could clean up balance sheets, though prices would be far below face value.
Americans with Brazilian credit cards or loans, including expats, need take no action now. Any relief would reach debtors only after the auction, and only for debts that meet the rules.
Background is in an earlier report on the planned debt purchase and the record loan delinquency. The guide to who runs Brazil’s economy explains the institutions, and the Brazil hub lists the latest coverage.
What Is Not Known
It is not known how much debt lenders will offer, because BRL 90 billion is the ministry’s expectation. No lender has said publicly whether it will take part.
The auction date, the discount that will actually win and the size of the state budget for it are also open. A provisional measure must still be converted into law by Congress, or it lapses.
What Comes Next
Responses are due by 11:59 p.m. on Friday, 30 October, and the ministry then plans a separate public notice for the auction. Mix Vale reports that the auction is planned for November, with a possible slip to early December.
The call does not mean the state will buy every debt offered, and it does not open renegotiation for consumers. Watch for the second notice, which will set the rules of the sale.
Frequently Asked Questions
What is Desenrola 3.0?
It is the third round of Brazil’s federal debt-relief programme. The state would buy overdue consumer debts at a discount of at least 90%.
What did Brazil publish on 22 October?
The Finance Ministry published Portaria MF 3,127, which sets the criteria for the debt purchase. It also opens a call for lenders, closing at 11:59 p.m. on 30 October.
Which debts are eligible?
Card, personal-loan, overdraft and MEI debts of up to BRL 10,000 (about US$1,980) each, overdue for 720 to 1,645 days. The discount must be at least 90%.
Can I renegotiate my debt now?
No, not at this stage. The government is calling on lenders first, and the auction and any relief for debtors come in later steps.
How much could the programme cost?
The ministry expects offers of up to BRL 90 billion (about US$17.8 billion). At the minimum 90% discount the state would pay at most BRL 9 billion (about US$1.8 billion).
Sources: Diário Oficial da União, Portaria MF 3,127 of 22 October 2026 (edition 200-A); Poder360, 22 October; Metrópoles, 22 October; Tribuna do Sertão, 22 October; Mix Vale, 22 October; Câmara dos Deputados, MPV 1393/2026; Exchange rates, open.er-api.com; US Securities and Exchange Commission, company tickers (all accessed 23 October 2026).